Lexicon Pharmaceuticals moves to Nasdaq Capital Market to get more time on $1 bid rule

Lexicon Pharmaceuticals, Inc. (Nasdaq: LXRX) said Nasdaq gave it a second 180-calendar day period to bring its share price back above the exchange's minimum, after the company agreed to move its stock from the Nasdaq Global Select Market to the Nasdaq Capital Market. The Woodlands, Texas company disclosed the letter in a Form 8-K dated July 3, 2025.

What Nasdaq requires

On July 3, 2025, Nasdaq's Listing Qualifications staff wrote that Lexicon is eligible for an additional 180 calendar days, until December 30, 2025, to regain compliance with the minimum $1 bid price. To regain compliance, its closing bid price must be at least $1 per share for a minimum of ten consecutive business days during that period.

Lexicon applied to transfer its stock to the Capital Market, and Nasdaq approved the application. The stock moves at the opening of business on July 7, 2025. Eligibility for the extra time depends on several conditions. The company must meet the continued listing requirement for market value of publicly held shares and the other initial listing requirements of the Capital Market, apart from the bid price rule. It must also give written notice of its intent to cure the deficiency in the second compliance period by effecting a reverse stock split, if necessary.

The 8-K does not give Lexicon's closing bid price, so the gap to the $1 threshold cannot be measured from the filing.

The business under the listing

The annual report for 2024 describes a company devoted mostly to research and development of pilavapadin, LX9851 and sotagliflozin, and to commercializing INPEFA, which is sotagliflozin. Lexicon was incorporated in Delaware in July 1995, began operations in September 1995 and listed on the Nasdaq Global Select Market in April 2000. The company says it has identified and validated in living animals more than 100 targets with promising profiles for drug discovery.

Pilavapadin, also called LX9211, is an orally delivered small molecule for neuropathic pain. The FDA granted it Fast Track designation for diabetic peripheral neuropathic pain. Its PROGRESS Phase 2b trial enrolled 496 patients with type 1 or type 2 diabetes and moderate to severe DPNP in a randomized, double-blind, placebo-controlled study of three treatment groups. The company says the trial showed clear evidence of effect at the 10 mg dose. That is the company's reading of a Phase 2b study, not a pivotal result. Pilavapadin came from a drug discovery alliance with Bristol-Myers Squibb, and Lexicon holds exclusive development and commercialization rights to it.

Sotagliflozin has a harder regulatory history. The FDA issued a complete response letter on the sotagliflozin NDA for type 1 diabetes in March 2019, and another in December 2024 on the NDA for sotagliflozin as an adjunct to insulin therapy in adults with type 1 diabetes and chronic kidney disease. At Lexicon's request, the FDA has issued a public Notice of Opportunity for Hearing on whether there are grounds for denying approval of that NDA. The proceedings are ongoing. Lexicon says it is separately pursuing regulatory approval of ZYNQUISTA, its sotagliflozin product for type 1 diabetes, and it is conducting a Phase 3 trial of sotagliflozin in hypertrophic cardiomyopathy.

LX9851 is being developed for obesity and associated cardiometabolic disorders. It is in preclinical development ahead of an investigational new drug application. The annual report says the company has advanced a number of other compounds into preclinical research, and that its discovery work covered almost 5,000 genes in mice.

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